Fitch affirms Sunshine Holdings at ‘AA+(lka)’; Outlook stable

Fitch Ratings has affirmed Sunshine Holdings PLC’s National Long-Term Rating at ‘AA+(lka)’. The Outlook is Stable.

Sunshine’s rating reflects its steady business profile, which is anchored by defensive cash flows in its healthcare manufacturing and retail and consumer segments, and its strong balance sheet. This counterbalances weaknesses in its agriculture segment (16% of EBIT) over the next 12-18 months amid moderating palm oil prices.

Sunshine’s rating is constrained by its smaller operating scale and modest market positions in its core businesses compared to higher-rated peers. Fitch expects EBITDA net leverage to remain at below 1.0x in FY25-FY26 (financial year ending March), which is comfortably below the 4.0x level above which we would consider negative rating action. “We expect a limited drag on leverage from softer EBITDA margins and higher capex.”

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